News

Finally, an A-12 Deal

—John A. Tirpak1/27/2014

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The Navy and its
contractors on the A-12 stealth attack plane program have settled their
record-breaking 23-year legal dispute about who should bear costs on the failed
and terminated project. Under the deal, announced by the Justice Department,
Boeing and General Dynamics will each give the Navy $200 million worth of goods
and services, rather than cash, to settle the suits and counter-suits. Boeing
will give three EA-18G Growler electronic warfare jets to the Navy and other
credits while General Dynamics will give a $200 million credit on the DDG-1002
guided missile destroyer project. The A-12 was to replace the A-6 carrier-based
medium bomber in the Navy and, under a joint agreement, replace the F-111
interdiction/strike aircraft for the Air Force. Boeing and the Navy sides
issued statements expressing relief that the conflict has ended, and both said
the deal is worth it to put the dispute behind them. General Dynamics had not
yet commented by press time. The A-12 was cancelled by then-Defense Secretary
Dick Cheney in 1991 because of huge cost overruns and years of schedule delays
revealed by a Pentagon inspector general investigation.
(Continue to full report)